Market Mavens and Networking: Benefits and Costs of Network Participation
By Dr. Shuoyang Zhang —
Market mavens are “individuals who have information about many kinds of products, places to shop, and other facets of markets, and initiate discussions with consumers and respond to requests from consumers for market information” (Feick and Price 1987, p.85). Previous research has suggested market mavens act as important social beings for the marketplace. Specifically, they have a desire to help others and have a sense of obligation to share their market knowledge with others in their social networks (Walsh, Gwinner, and Swanson 2004). Even though prior research has documented the links between market mavens and a variety of social traits, what remains underexplored is how it influences consumers within the domain of emerging social networks. Our work fills this gap by tracking market mavens longitudinally and observing their network growth and their personal outcomes over time.
Our findings contribute to the extant literature in three distinct ways. First, despite their social nature and desire to interact, market mavens have a lower rate of network growth over time. They tend to build a selective network, rather than a larger network. Second, market mavens occupying central positions experience both positive (satisfaction) and negative (stress) personal outcomes over time. Finally, we identify the importance of differentiating perceptual networks (vs. objective networks) as the primary driver of consumers’ personal outcomes.
Method
We conducted a longitudinal field study at a large North American university. Participants filled out questionnaires at two different time-periods. Time 1 data was collected approximately five to six weeks after the start of the academic freshman year (early October) and Time 2 data was collected about five months after the initial data collection (early February). The final sample (N=71) included 37 females and 34 males.
Network data were collected using the roster method, a technique that is widely used in network research (Wasserman and Faust 1994). This method is consistent with previous network studies in marketing and is useful in identifying individuals’ network positions (Iacobucci et al. 1996). Then, participants rated their relationship strength (1 – do not know or barely know; 2 – acquaintance; 3 – friend; 4 – close friend) with every other student on the floor (Lee et al., 2010). To identify one’s friendship network, a rating of 3 or above was chosen to reflect individual’s strong-tie network. Therefore, for every direct link (a rating of 3 or above), the focal actor received a score 1 and all other responses were given a rating of 0. Given that this was a longitudinal study, we were able to track the change in development of outgoing ties and incoming ties over time.
To analyze the effects of market mavenism on individuals’ social network development, a stochastic actor-oriented model of network dynamics was assessed using the SIENA 3.14 software (Snijders et al. 2007). The actor-oriented model, when elaborated upon for application use, contains parameters that are estimated from the observed data by a statistical procedure (Snijders et al. 2010). The effects of market mavenism on the development of network ties are assessed by examining the parameter estimates of three selection effects: ego effect, alter effect, and similarity effect (Burk et al. 2007). A positive (negative) ego effect implies that market mavenism is positively (negatively) associated with an individual’s ability to develop social ties and thus is likely to increase (decrease) the number of friendship nominations made over time. A positive (negative) alter effect implies that market mavenism is positively (negatively) associated with being attractive as a friend and thus is likely to result in an individual receiving more (fewer) friendship nominations over time. Lastly, a positive (negative) similarity effect implies that individuals prefer friendships with others that have similar (dissimilar) levels of market mavenism (i.e., homophilous selection). To test the interaction of market mavenism x centrality on stress and satisfaction, we analyzed the data using regressions. Market mavenism, out-degree ties (for out-degree models), in-degree ties (for in-degree models) were centered and entered into a regression, along with their respective interaction terms, as predictors of satisfaction and stress.
Results
Contrary to our expectations, we find that market mavenism is negatively associated with network growth (negative ego effect). This result is unexpected given the social nature of market mavens. We speculate that despite market mavens’ desire to interact and to connect with others, their motivation for building relationships stems not from assembling a larger network (connection quantity), but from nurturing a selective network that can bring social benefits (connection quality, positive similarity effect).
Further, we find that market mavens occupying central positions experience both positive (satisfaction) and negative (stress) personal outcomes over time. While previous research has generally viewed market mavenism as a positive characteristic (e.g., Feick and Price 1987), we find that market mavens are prone to experiencing stress as a result of their network position. We suggest that greater satisfaction was generated by centrally-located market mavens through more strategic and active use of their network. While this did not create satisfaction immediately, the results of their network building efforts garnered them greater satisfaction over time. On the same token, we also found that the market maven role came at a personal cost. Based on the demands-resources model of stress (Bakker and Demerouti 2007), the relationship between market mavenism and high network centrality was found to be positively associated with stress.We believe this was due to their increased investment in the time and energy to respond to the demands, which thereafter faltered due to their inability to keep up with the resource requirements necessary to meet those demands. This presents a paradox for market mavens as their market knowledge and sharing behavior, when linked with network centrality, may beneficial and detrimental to their personal well-being.
Finally, we find that individuals’ perception of their network position were more strongly associated with their personal outcomes than others’ perceptions. This is an important finding because it reveals that how one perceives him/herself within their network acts as the primary driver of his or her psychological well-being.
Written by Shuoyang Zhang. Seung Hwan (Mark) Lee & Gail Leizerovici
Assistant Professor of Management & Marketing, Cameron School of Business
University of St. Thomas
* This research has been accepted by the Journal of Consumer Behaviour and will be in print soon.
References
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